[भाग II—खण् ड 3(ii)]
भारत का राजपत्र : ऄसाधारण
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 28th December, 2021
(INCOME-TAX)
S.O. 5429(E).—In exercise of the powers conferred by sub-sections (6B) and (6C) of section 250
of the Income-tax Act, 1961 (43 of 1961), and in supersession of the Faceless Appeal Scheme, 2020 of the
Government of India in the Ministry of Finance published in the Official Gazette vide number S.O. 3296(E)
dated 25th September 2020 and S.O. 3297(E) dated 25th September 2020, except as respects things done or
omitted to be done before such supersession, the Central Government hereby makes the following Scheme,
namely:__
- Short title and commencement.––(1) This Scheme may be called the Faceless Appeal Scheme, 2021.
(2) It shall come into force on the date of its publication in the Official Gazette.
- Definitions.–– (1) In this Scheme, unless the context otherwise requires, ––
- (i) ―Act‖ means the Income-tax Act, 1961 (43 of 1961);
- (ii) ―addressee‖ shall have the same meaning as assigned to it in clause (b) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);
- (iii) ―appeal‖ means appeal filed by a person under sub-section (1) of section 246A or section 248 of the Act;
- (iv) ―appellant‖ means the person who files appeal under section 246A or section 248 of the Act;
- (v) ―authorised representative‖ shall have the same meaning as assigned to it in sub-section (2) of section 288 of the Act;
- (vi) ―automated allocation system‖ means an algorithm for randomised allocation of cases, by using suitable technological tools, including artificial intelligence and machine learning, with a view to optimise the use of resources;
- (vii) ―computer resource‖ shall have the same meaning as assigned to it in clause (k) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);
- (viii) ―computer system‖ shall have the same meaning as assigned to it in clause (l) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);
- (ix) ―computer resource of appellant‖ shall include the registered account in the designated portal of the Income-tax Department, or the Mobile App linked to the registered mobile number, or the registered e-mail address, of the appellant;
- (x) ―digital signature‖ shall have the same meaning as assigned to it in clause (p) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);
- (xi) ―designated portal‖ means the web portal designated as such by the Principal Chief Commissioner of Income-tax or Principal Director General of Income-tax, in charge of the National Faceless Appeal Centre;
- (xii) ―e-appeal‖ means the appellate proceedings conducted electronically in 'e-appeal' facility through the registered account of the appellant in designated portal;
- (xiii) ―electronic record‖ shall have the same meaning as assigned to it in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);
- (xiv) ―email‖ or ―electronic mail‖ and ―electronic mail message‖ means a message or information created or transmitted or received on a computer, computer system, computer resource or communication device including attachments in text, image, audio, video and any other electronic record, which may be transmitted with the message;
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[PART II—SEC. 3(ii)]
- (xv) ―hash function‖ and ―hash result‖ shall have the same meaning as assigned to them in the Explanation to sub-section (2) of section 3 of the Information Technology Act, 2000 (21 of 2000);
- (xvi) ―Mobile app‖ shall mean the application software of the Income-tax Department developed for mobile devices which is downloaded and installed on the registered mobile number of the appellant;
- (xvii) ―National Faceless Assessment Centre‖ shall mean the National Faceless Assessment Centre set up and notified under section 144B of the Act;
- (xviii) ―real time alert‖ means any communication sent to the appellant, by way of Short Messaging Service on his registered mobile number, or by way of update on his Mobile App, or by way of an email at his registered email address, so as to alert him regarding delivery of an electronic communication;
- (xix) ―registered account‖ of the appellant means the electronic filing account registered by the appellant in the designated portal;
- (xx) ―registered e-mail address‖ means the e-mail address at which an electronic communication may be delivered or transmitted to the addressee, including-
- (a) the email address available in the electronic filing account of the addressee registered in designated portal; or
- (b) the e-mail address available in the last income-tax return furnished by the addressee; or
- (c) the e-mail address available in the Permanent Account Number database relating to the addressee; or
- (d) in the case of addressee being an individual who possesses the Aadhaar number, the e-mail address of addressee available in the database of Unique Identification Authority of India; or
- (e) in the case of addressee being a company, the e-mail address of the company as available on the official website of Ministry of Corporate Affairs; or
- (f) any e-mail address made available by the addressee to the income-tax authority or any person authorised by such authority;
- (xxi) ―registered mobile number‖ means the mobile number of the appellant, or his authorised representative, appearing in the user profile of the electronic filing account registered by the appellant in the designated portal;
- (xxii) ―Rules‖ means the Income-tax Rules, 1962;
- (xxiii) ―video conferencing or video telephony‖ means the technological solutions for the reception and transmission of audio-video signals by users at different locations, for communication between people in real-time.
(2) Words and expressions used herein and not defined but defined in the Act shall have the same meaning as assigned to them in the Act.
3. Scope of the Scheme.–– The appeal under this Scheme shall be disposed of in respect of such territorial area or persons or class of persons or incomes or class of incomes or cases or class of cases, as may be specified by the Board.
4. Faceless Appeal Centres.–(1) For the purposes of this Scheme, the Board may set up-
- (i) a National Faceless Appeal Centre to facilitate the conduct of e-appeal proceedings in a centralised manner; and
- (ii) Appeal units, as it may deem necessary to facilitate the conduct of e-appeal proceedings by the Commissioner (Appeals).
[भाग II—खण् ड 3(ii)]
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(2) All communication between the Commissioner (Appeals) and the appellant or any other person or the Assessing Officer with respect to the information or documents or evidence or any other details, as may be necessary under this Scheme shall be through the National Faceless Appeal Centre.
(3) The appeal unit referred to in clause (ii) of sub-paragraph (1) shall have the following authorities, namely:–
- (a) one Commissioner (Appeals);
- (b) such other income-tax authority, ministerial staff, executive or consultant to assist the Commissioner (Appeals) as considered necessary by the Board.
- Procedure in appeal.––(1) The appeal referred to in paragraph 3 shall be disposed of under this Scheme as per the following procedure, namely:__
- (i) the National Faceless Appeal Centre shall assign the appeal for disposal to a Commissioner (Appeals) of a specific appeal unit through an automated allocation system;
- (ii) On assignment of an appeal, the Commissioner (Appeals),―
- (a) may condone the delay in filing appeal if the appeal is filed beyond the time permitted under section 249 of the Act and record the reasons for such condonation or otherwise in the appeal order passed under clause (x);
- (b) shall through the National Faceless Appeal Centre give notice to the appellant asking him to file his submission within the date and time specified in such notice and also send a copy of such notice to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be;
- (c) may through the National Faceless Appeal Centre obtain such further information, document or evidence from the appellant or any other person, as the case may be;
- (d) may through the National Faceless Appeal Centre obtain a report of the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, on grounds of appeal or information, document or evidence furnished by the appellant;
- (e) may, through the National Faceless Appeal Centre, request the Assessing Officer directly or through the National Faceless Assessment Centre, as the case may be, for making further inquiry under sub-section (4) of section 250 of the Act and submit a report thereof;
- (f) shall, through the National Faceless Appeal Centre serve a notice upon the appellant or any other person, as the case may be, or the Assessing Officer directly or through the National Faceless Assessment Centre, as the case may be, to submit such information, document or evidence or report, as the case may be, as may be specified by the Commissioner (Appeals) or relevant to the appellate proceedings, on a specified date and time;
- (iii) the appellant or any other person, as the case may be, shall furnish a response to the notice referred to in sub-clauses (b), (c) or (f) of clause (ii), within the date and time specified therein, or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
- (iv) the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, shall furnish a report in response to the notice referred to in sub-clauses (d), (e) or (f) of clause (ii), within the date and time specified therein or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
- (v) the appellant may file additional grounds of appeal to the Commissioner (Appeals) through the National Faceless Appeal Centre, in such form, as may be specified by the National Faceless Appeal Centre, specifying therein the reason for omission of such ground in the appeal filed by him;
- (vi) where the additional ground of appeal is filed-
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[PART II—SEC. 3(ii)]
- (a) the Commissioner (Appeals) shall, through the National Faceless Appeal Centre, send the additional ground of appeal to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, for providing comments, if any;
- (b) the Assessing Officer, either directly or through the National Faceless Assessment Centre, as the case may be, shall furnish their comments, within the date and time specified or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
- (c) the National Faceless Appeal Centre, on receipt of comments from the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, shall send such comments to the Commissioner (Appeals), and where no such comments are furnished, inform the Commissioner (Appeals) accordingly;
- (d) the Commissioner (Appeals) shall, after taking into consideration the comments, if any, received from the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be,—
- (A) if is satisfied that the omission of additional ground from the form of appeal was not wilful or not unreasonable, admit such ground; or
- (B) in any other case, not admit the additional ground, for reasons to be recorded in writing in the appeal order passed under clause (x);
- (vii) the appellant may furnish additional evidence, other than the evidence produced by him during the course of proceedings before the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, to the Commissioner (Appeals), through the National Faceless Appeal Centre, in such form, as may be specified by the National Faceless Appeal Centre, specifying therein as to how his case is covered by the exceptional circumstances specified in sub-rule (1) of rule 46A of the Rules;
- (viii) where the additional evidence is furnished,—
- (a) the Commissioner (Appeals) through the National Faceless Appeal Centre shall send the additional evidence to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, for furnishing a report on the admissibility of additional evidence in accordance with rule 46A of the Rules;
- (b) the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, shall furnish the report, as referred to in sub-clause (a), within such date and time as specified or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
- (c) the National Faceless Appeal Centre, on receipt of the report from the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, shall send such report to the Commissioner (Appeals), and where no such report is furnished, inform the Commissioner (Appeals);
- (d) the Commissioner (Appeals) may, after considering the additional evidence and the report, if any, furnished by the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, admit or reject the additional evidence, for reasons to be recorded in writing, and the same shall form a part of the appeal order passed under clause (x);
- (e) the Commissioner (Appeals) shall, if he admits such evidence, before taking such evidence into account in the appellate proceedings, prepare a notice to provide an opportunity through the National Faceless Appeal Centre to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, to examine such evidence or to cross-examine such witness, as may be produced by the appellant, or to produce any evidence or document, or any witness in rebuttal of the evidence or witness produced by the appellant, and furnish a report thereof and send such
[भाग II—खण् ड 3(ii)]
भारत का राजपत्र : ऄसाधारण
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notice, through the National Faceless Appeal Centre, to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be;
- (f) the Assessing Officer shall either directly or through the National Faceless Assessment Centre, as the case may be, furnish the report within the date and time specified or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
- (g) the National Faceless Appeal Centre shall send the report furnished by the Assessing Officer, either directly or through the National Faceless Assessment Centre, as the case may be, to the Commissioner (Appeals) or where no such report is furnished, inform the Commissioner (Appeals);
- (h) the Assessing Officer, either directly or through the National Faceless Assessment Centre, as the case may be, may request the Commissioner (Appeals) through the National Faceless Appeal Centre to direct the production of any document or evidence by the appellant, or the examination of any witness, as may be relevant to the appellate proceedings;
- (i) the Commissioner (Appeals) for the purpose of making enquiries in the appeal proceedings as referred to in sub-clause (e) of clause (ii) or where the request referred to in sub-clause (h) is received, may, if it deems fit, prepare a notice –
- (A) directing the appellant to produce such document or evidence, as it may specify; or
- (B) for examination of any other person, being a witness;
and send such notice to the National Faceless Appeal Centre;
- (j) the National Faceless Appeal Centre shall serve the notice referred to in sub-clause (i) upon the appellant or any other person, being a witness, as the case may be;
- (k) the appellant or any other person, as the case may be, shall furnish his response to the notice referred to in sub-clause (j), within the date and time specified in the notice or such extended date and time as may be allowed on the basis of application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
- (l) the National Faceless Appeal Centre, on receipt of response from the appellant or any other person, as the case may be, shall send such response to the Commissioner (Appeals) or where no such response is furnished, inform the Commissioner (Appeals) accordingly;
- (ix) where the Commissioner (Appeals) intends to enhance an assessment or a penalty or reduce the amount of refund, -
- (a) the Commissioner (Appeals) shall prepare a show-cause notice containing the reasons for such enhancement or reduction, as the case may be, and send such notice through the National Faceless Appeal Centre;
- (b) the National Faceless Appeal Centre shall serve the notice, as referred to in sub-clause (a), upon the appellant;
- (c) the appellant shall, within the date and time specified in the notice or such extended date and time as may be allowed on the basis of application made in this behalf, furnish his response to the National Faceless Appeal Centre;
- (d) where a response is furnished by the appellant, the National Faceless Appeal Centre shall send such response to the Commissioner (Appeals), or where no such response is furnished, inform the Commissioner (Appeals) accordingly.
- (x) The Commissioner (Appeals) shall, thereafter:-
- (a) prepare in writing, an appeal order in accordance with the provisions of section 251 of the Act stating the points for determination, the decision thereon and the reason for decision; and
(b) send such order after signing the same digitally to the National Faceless Appeal Centre
along with the details of the penalty proceedings, if any, to be initiated therein;
(xi) the National Faceless Appeal Centre shall upon receipt of the order, as referred to in sub-clause
(b) of clause (x), —
- (a) communicate such order to the appellant;
- (b) communicate such order to the Principal Chief Commissioner or Chief Commissioner or
Principal Commissioner or Commissioner as per sub-section (7) of section 250 of the Act;
- (c) communicate such order to the Assessing Officer either directly or through the National
Faceless Assessment Centre, as the case may be, for such action as may be required under
the Act;
- (d) where initiation of penalty has been recommended in the order, serve a notice on the
appellant calling upon him to show cause as to why penalty should not be imposed upon
him under the relevant provisions of the Act;
